August 2014 International Tax Update

The month of August 2014 saw tax changes across several countries. The following is a list of those countries that have had recent change or have recently announced upcoming changes.

Bangladesh

The Government will enact a new law on Value Added Tax, which will impose a single VAT rate of 15% at all levels. The Value Added Tax Bill 2012 has been sent to the Parliamentary Standing Committee for scrutiny. It is expected that the new law will not become effective until 2015.

Colombia

The government announced the intention to present a tax reform within the next few weeks that could include a VAT increase from the current rate of 16% to 17% or 18%.

Egypt

The Government of Egypt may increase the sales tax rate to generate more revenue and has not determined if the sales tax will be replaced with a VAT.

France

The European Commission has requested that France no longer treat admission to sporting events as exempt from VAT. The government of France has 60 days to respond to the request or risk the matter being referred to the European Court of Justice.

Honduras

The Revenue Office has submitted a proposal to increase the sales tax rate from 15% to 18% on the sale of weapons.

Kuwait

Kuwait has announced that it is considering implementing a VAT.

Luxembourg

The Prime Minister has announced a plan to increase VAT in 2015.

Portugal

The Government may increase the standard rate by 1-2% as part of its commitments to the European Union and the International Monetary Fund.

Qatar

Qatar has announced that it is considering implementing a VAT.

Romania

Representatives of the governing party announced a decrease in the standard VAT rate from 24% to 22% in 2014.

Suriname

The Government announced that it will replace the current Turnover Tax with a Value Added Tax. No official date of introduction has been announced.

Thailand

The Government announced that it will decrease its current VAT rate from 7% to 6.4% beginning October 1, 2014 and then increase the VAT rate all the way up to 9% beginning October 1, 2015.

Zimbabwe

The Government has proposed a 1% increase to VAT to fund the National Health Insurance (NHI). If the increase is approved, the VAT rate in Zimbabwe will be 16%.